The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to amend IAS 21 The Effects of Changes in Foreign Exchange Rates.
The proposed amendment to IAS 21 would (a) define exchangeability and thus a lack of exchangeability; and (b) specify how an entity determines the spot exchange rate when a currency lacks exchangeability.
The AcSB’s due process includes:
- ensuring that Canadian entities’ financial reporting needs are considered by the IASB; and
- issuing the AcSB’s own exposure draft on each IASB proposal.
Subject to the responses to the AcSB’s Exposure Draft on whether the IASB’s proposals are appropriate for application in Canada, the AcSB expects that the amendments will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRS Standards for publicly accountable enterprises.